Study: Wages not keeping up with inflation
So you think you’re underpaid? Well, you’re not alone. The International Labor Organization reports that salaries grew at a rate of 1.2% last year. That number is down from the 3% the ILO’s report showed in 2007.
This isn’t good news, but Gerry Burns of Manpower in Houston says Houstonians seem to be doing better than most.
“Houston, as always, seems to be ahead of the curve. We seem to be doing better than most markets,” Burns told KTRH.
And why is that? Burns thinks it’s related to the energy industry.
“Because of our international business environment and because a big part of our local economy is related to energy,” Burns explained.
But not every company here in Houston is giving employees salary increases. Burns says many companies are preparing for the looming fiscal cliff.
“Companies are building their reserves in case there’s another financial setback,” Burns said.
Burns also thinks that companies are taking a different attitude towards raises these days.
“There may be a feeling that they haven’t cut jobs, but in lieu of that they cannot give the increases they used to give,” Burns explained.
Burns is also optimistic that we could see salaries increase if politicians in Washington are able to come to an agreement and avoid the fiscal cliff.
“We should see companies loosen up in time, and hopefully within a year or two, give increases,” Burns said.